THORChain is a decentralized cross-chain liquidity protocol that enables the direct exchange of native assets between various blockchain networks, such as Ethereum, Binance Smart Chain, and Polkadot, without the need for wrapped or pegged assets. It uses the Cosmos-Tendermint BFT consensus mechanism and relies on its native token, RUNE, for staking, governance, and liquidity provision.
Thorchain (RUNE) is used in several key roles within the THORChain network:
Settlement Asset: RUNE serves as the settlement currency between all supported assets, ensuring that any two assets can be swapped directly. For example, a BTC -> ETH transaction involves swapping BTC for RUNE and then RUNE for ETH.
Network Security: Node operators must bond RUNE to ensure the network’s economic security. The 2:1 bond:pool ratio ensures that the value of RUNE needed in the network is three times the value of the non-RUNE assets in the liquidity pools.
Governance: Users can vote with their liquidity (RUNE:ASSET symmetrically added) for the pools they want to be active. The pools with the most liquidity become active.
Incentives: Block rewards are paid to Liquidity Providers and Node Operators on a set emission schedule, in addition to swap fees.
Liquidity Pools: Each asset is paired with RUNE as a settlement asset to maximize liquidity and efficiency, capturing value for RUNE.
Staking: The Proof of Stake consensus mechanism requires the staking of native RUNE tokens. Nodes need to bond at least 1 million RUNE to earn a validator spot.
- Gas Fees: RUNE is used to pay for swap/gas fees for RUNE pairs.
These roles ensure that RUNE is a vital part of the THORChain network, facilitating cross-chain swaps and maintaining the network's security and liquidity.
To store Thorchain (RUNE) tokens securely, you can use a Ledger hardware wallet. Here are the steps to follow:
Connect Your Ledger Device:
- Connect your Ledger device to your computer.
- Open Ledger Live and navigate to the Manager section.
- Search for the Thorchain app in the App Catalog and install it.
Access Thorchain:
- Go to app.thorswap.finance/swap and click "Connect Wallet."
- Select "Connect Ledger" and ensure your Ledger device is unlocked.
- Choose the Thorchain app on your Ledger device and click "Connect".
Create a Wallet Address:
- Once connected, you will see a "Wallet" button. Click on it to view your wallet address.
- This address can be used to receive RUNE tokens and can be viewed on a block explorer.
- Manage Your RUNE:
- You can manage your RUNE tokens using the Ledger Live app, which allows you to check your balance, track transactions, and more.
By following these steps, you can securely store and manage your Thorchain (RUNE) tokens using a Ledger hardware wallet.
To buy Thorchain (RUNE) tokens, you can follow these steps:
Choose a Cryptocurrency Exchange:
- Binance: Create a free account on the Binance website or app, verify your identification, and then select THORChain and USD from the dropdown menu. You can use a credit card, debit card, or bank deposit to purchase RUNE.
- Kriptomat: Sign up with Google, Apple, or enter your name and email, then verify your email, phone number, and identity. Add funds using a bank deposit or credit card, and then select THORChain from the list of cryptocurrencies to buy RUNE.
- Uphold: Create a free account on the Uphold website or app, verify your identity, and then choose your payment method. You can use a credit or debit card, bank account, or external crypto wallet to buy RUNE.
Verify Your Account:
- Binance: Verify your email and mobile number, and then complete the identification verification process.
- Kriptomat: Verify your email, phone number, and identity to unlock the full potential of the Kriptomat platform.
- Uphold: Verify your identity as part of the account creation process.
Add Funds:
- Binance: Use a credit card, debit card, or bank deposit to add funds to your Binance account.
- Kriptomat: Add funds using a bank deposit or credit card.
- Uphold: Connect your Uphold wallet to your debit/credit card, bank account, or external crypto wallet to add funds.
Buy THORChain (RUNE):
- Binance: Select THORChain from the dropdown menu and confirm your order.
- Kriptomat: Click on the Kriptomat icon, select "Buy," choose THORChain, enter the amount, preview the transaction, and confirm your purchase.
- Uphold: Choose the amount you want to transact, select "To" and choose RUNE, preview the deposit, and confirm the transaction.
Store or Use Your RUNE:
- Binance: Store your RUNE in your personal crypto wallet or hold it in your Binance account. You can also trade for other crypto or stake it on Binance Earn for passive income.
- Kriptomat: You now own THORChain and can use it as desired.
- Uphold: Store your RUNE on the secure Uphold wallet or trade it for other assets like crypto, stablecoins, and metals right from your Uphold wallet.
Remember to carefully consider your investment experience, financial situation, investment objectives, and risk tolerance before making any investment decisions. Cryptocurrency prices are subject to high market risk and price volatility.
